Quarterly revenue was flat from the same year-ago period, at $126.7 million, below the company's guidance of $128 million to $133 million. That translated to adjusted net income of $7.2 million, or $0.20 per share, down from adjusted net income of $10.3 million, or $0.27 per share in last year's fiscal Q3.

More specifically within Vera Bradley's top line, direct segment revenue climbed 2.3% year over year, to $86.1 million, as new store growth more than offset a 5% decline in comparable sales, while indirect segment revenue fell 4.6%, to $40.6 million, as lower orders from specialty retail accounts were only partially offset by strength at certain key department store and non-department store accounts.

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Vera Bradley CEO Robert Wallstrom noted consumer engagement has improved thanks to his company's new brand positioning, from marketing initiatives and the opening of a new SoHo flagship store.

Sales at verabradley.com were also weaker-than-expected due to lower levels of retirement product.

Now what

For the current quarter, Vera Bradley expects revenue of $135 million to $140 million, down from $154.1 million in the same year-ago period. That should result in diluted earnings per share of $0.23 to $0.25, down from $0.82 per share in last year's fiscal Q4. By comparison, analysts' consensus estimates called for higher fiscal Q4 revenue of $158.8 million, and higher earnings per share of $0.47.

This was a disappointing quarter, followed by an underwhelming outlook for the key holiday period. As such, it's no surprise to see shares of Vera Bradley plunging Wednesday.

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